SAN FRANCISCO (AP) — YouTube's inability to keep big-brand ads off unsavory videos is threatening to transform a rising star in Google's digital family into a problem child. Skittish advertisers have curtailed their spending until they are convinced Google can prevent their brands from appearing next to extremist clips promoting hate and violence. Google CEO Sundar Pichai told analysts during a Thursday review of the first quarter that the company has had "thousands and thousands" of conversations with advertisers as YouTube takes steps to protect their brands. Advertisers began to flee YouTube last month, after The Times in London and other media outlets turned up evidence that their brands were appearing alongside clips promoting terrorism and racism. The findings alerted advertisers that YouTube didn't have adequate technology or staffing to shield brands from some of the appalling material that gets posted on a site that receives 400 hours of video per minute. (Some also stepped back from a related system that Google operates to place commercials next to videos on outside websites.) The list included big-spending marketers such as PepsiCo, Wal-Mart Stores, Starbucks, AT&T, Verizon, Johnson & Johnson, and Volkswagen. RBC Capital Markets analyst Mark Mahaney estimates the reduced spending on YouTube and Google's ad network for video on third-party sites could reduce Alphabet's net revenue by $300 million, to $1.5 billion, this year.
Youtube Ad Boycott Could Spell Trouble For Alphabet's Google
By MICHAEL LIEDTKE, AP Technology Writer, San Antonio Express-News: World
Thu, 04/27/2017 - 3:27pm
Topics: san francisco ap youtube skittish google ceo sundar pichai advertisers the times london some the pepsico wal-mart stores starbucks at&t verizon johnson volkswagen rbc capital markets mark mahaney alphabet youtube google the johnson brands promoting clips videos appearing thousands video spending
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